Senate fights insurance costs/ Bill would let some buy cheaper

0 Comments | Gazette, The (Colorado Springs), Jan 31, 2002 | by Kyle Henley

DENVER - Some Coloradans would get a break from high health insurance premiums under a bill that advanced Wednesday in the state Senate.

Senate Bill 12 would let healthy people take advantage of the relatively low cost of an insurance policy that covers only catastrophic illness and other major medical problems if they also put money into a linked medical savings account.

Money from the savings account would be used to cover day-to-day medical needs such as annual checkups and other regular visits to the doctor, said Sen. Bob Hagedorn, D-Aurora, the bill's sponsor.

The Senate Health, Environment, Children and Families Committee approved SB12 by a 4-3 vote.

While it would not mean great relief for small business owners who have been hammered by skyrocketing health care costs in recent years, it could help stabilize the rise in premiums, Hagedorn said.

In some cases, health insurance premiums paid by small business owners have jumped as much as 60 percent a year. The cost of catastrophic policies has not increased at nearly the same pace as traditional health insurance.

"All we are doing is offering another option," Hagedorn said.

Hagedorn, a Democratic candidate for governor, is offering the plan as an alternative to one backed by Gov. Bill Owens.

Owens wants to reduce the number of requirements the state puts on health insurance companies, allowing them to offer policies, for instance, that wouldn't cover diabetes, prosthetic devices, hospice care, treatment for alcoholics, mental illness and a host of other medical problems.

Owens has likened health insurance plans offered in Colorado to a Cadillac and said people should have the option of buying a Chevrolet.

Sen. Mary Ellen Epps, R-Colorado Springs, voted against SB12 in committee because she prefers the governor's plan.

"If we could pick and choose the benefits we need, I think that would be helpful," she said. "I think we should have an insurance policy that best fits us."

But many groups oppose flexible, requirement-free plans, arguing people can't predict what kind of medical needs they'll have.

"Each of the mandated benefits was placed in law because it was found that health insurance was falling short," said Steve Bieringer of the American Diabetes Association. "I'd like not to go back to that kind of situation."

- Kyle Henley covers state government and politics and may be reached at (303) 837-0613 or khenley@gazette.com.